EURNZD Down on Brexit Vote?


The Euro-Kiwi rate appears to be on a downwards trend after it bounced off its 200-day moving average value last week. The pair closed at the 200-day average on January 8 after disappointing Australian trade data releases. However, it shunned bad news in the following days, reacting strongly to positive news about Australia’s better than expected Retail Sales and Italy’s worse than expected Industrial Production on the 10th.

After a deceleration in German GDP growth, according to data released today suggesting that output in 2018 rose by 1.5% compared to 2.2% in 2017, the EURNZD pair again turned down. Currently the pair is trading at around 1.6775, with the short-term MA having crossed the long-term MA last Friday.

The Resistance point at 1.6938 (Fib. 38.2%) appears not to be binding, as the pair is slowly approaching the 1.6705 (Fib. 50.0%) Support level which could be reached if the Euro is affected by the Brexit vote today. The MACD is also supportive of the downwards trend as it has started its deceleration towards zero. However, it should be remembered that proper risk management is required in order for traders to avoid any excess risk taking.

Click here to access the HotForex Economic Calendar

Dr Nektarios Michail

Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.